Volusia school officials warn outsourcing won't be last of budget cuts

LINDA TRIMBLEEDUCATION WRITER

Published: Wednesday, February 13, 2013 at 4:52 p.m.

Last Modified: Wednesday, February 13, 2013 at 10:36 p.m.

Gov. Rick Scott's proposed teacher pay raises and education funding increase are like a life preserver that will help keep Volusia schools afloat, but local officials say they're not anywhere near enough to prevent what one of them calls a "financial tsunami" that's about to come ashore.

School Board members and Superintendent Margaret Smith discussed the governor's proposals Tuesday in DeLand as they met for the first time since Scott recommended a $1.2 billion increase in education funding that would include $2,500 raises for teachers.

They talked about his plan — which is simply a recommendation to the state lawmakers who will write the state budget — at a meeting where the board also voted to eliminate nearly 500 custodial and grounds maintenance jobs to help plug a budget hole expected to run at least $25 million.

And that's just the beginning, board members warned, of more cuts to personnel, instructional programs and other services that will be needed to balance the school budget for the year starting July 1.

"This is a financial tsunami we're facing," School Board member Candace Lankford warned as she endorsed the job cuts and a move to seek proposals from private firms that believe they can clean schools and mow lawns for less than the $18.8 million the district spends annually.

Most of that money goes for employee salaries and benefits. The private firms will be asked to guarantee they'll hire displaced school employees and offer them a pension benefit, although many workers fear they'll face pay cuts and lose health insurance.

The board left itself room to reverse course if the private proposals don't offer the "substantial savings" district staff believes they will. Based on average industry estimates from other school and college outsourcing contracts, staff estimated the board could save between $15.7 million and $21.5 million over four years.

The union that represents affected employees isn't waiting to see how that plays out. Its attorney, Dan Sims, said Wednesday he'll soon file a request for collective bargaining with district administrators to discuss the impact outsourcing would have on the workers.

And district officials are moving ahead to seek vendors' proposals, with a target of having a contract in place by late May.

The custodians and grounds workers are the latest addition to 1,900 school district jobs dropped from the payroll because of $80 million in budget cuts since 2007 due to state funding reductions, declining tax collections and falling enrollment.

The governor recommended a $412 hike in per-student funding, bringing it to $6,799. With Volusia enrolling 61,124 students, that would amount to a $25 million increase next school year, close to what school officials say is needed to balance the budget.

Smith warned it's not that simple. For one thing, Volusia is expected to lose about 400 students next school year and would lose the state funding for them, too. Smith said Scott's budget doesn't reflect that.

And even if lawmakers went along with the $412 per-student increase, Volusia would get only $395 for each student because it's penalized under a state cost-of-living adjustment to the funding formula that has cost the district $97 million since 2004.

Smith said the biggest issue is Scott's other initiatives included in the $1.2 billion increase he's recommended are already wrapped into the hike in per-student funding, not in addition to it.

So that means most of the $1.2 billion increase would be earmarked for teacher raises, state-required digital instructional materials and computer-based testing, school security, statewide enrollment growth and increased employer contributions to the state retirement fund.

In Flagler County, Scott's budget proposal would amount to an additional $5.1 million for public schools, with a little more than $2 million going for teacher raises. Flagler officials cut about $3.5 million from the school district's budget for the 2011-12 fiscal year, which included cutting the middle and high school days by 45 minutes and eliminating 42 teaching positions.

Preliminary projections show Volusia would have about $5 million extra under the governor's budget that the School Board would have the flexibility to direct where it's needed most, Smith said.

"I don't scoff at that, but we have a $30 million deficit when you include the increased costs we're facing," she said. "That's why I'm having to make these hard and tough recommendations to the School Board."

The board will start tackling those issues in a workshop from 9 a.m. to noon Feb. 26 in the School Administrative Complex, 200 N. Clara Ave., DeLand.

<p>Gov. Rick Scott's proposed teacher pay raises and education funding increase are like a life preserver that will help keep Volusia schools afloat, but local officials say they're not anywhere near enough to prevent what one of them calls a "financial tsunami" that's about to come ashore. </p><p>School Board members and Superintendent Margaret Smith discussed the governor's proposals Tuesday in DeLand as they met for the first time since Scott recommended a $1.2 billion increase in education funding that would include $2,500 raises for teachers. </p><p>They talked about his plan &mdash; which is simply a recommendation to the state lawmakers who will write the state budget &mdash; at a meeting where the board also voted to eliminate nearly 500 custodial and grounds maintenance jobs to help plug a budget hole expected to run at least $25 million. </p><p>And that's just the beginning, board members warned, of more cuts to personnel, instructional programs and other services that will be needed to balance the school budget for the year starting July 1. </p><p>"This is a financial tsunami we're facing," School Board member Candace Lankford warned as she endorsed the job cuts and a move to seek proposals from private firms that believe they can clean schools and mow lawns for less than the $18.8 million the district spends annually. </p><p>Most of that money goes for employee salaries and benefits. The private firms will be asked to guarantee they'll hire displaced school employees and offer them a pension benefit, although many workers fear they'll face pay cuts and lose health insurance. </p><p>The board left itself room to reverse course if the private proposals don't offer the "substantial savings" district staff believes they will. Based on average industry estimates from other school and college outsourcing contracts, staff estimated the board could save between $15.7 million and $21.5 million over four years. </p><p>The union that represents affected employees isn't waiting to see how that plays out. Its attorney, Dan Sims, said Wednesday he'll soon file a request for collective bargaining with district administrators to discuss the impact outsourcing would have on the workers. </p><p>And district officials are moving ahead to seek vendors' proposals, with a target of having a contract in place by late May. </p><p>The custodians and grounds workers are the latest addition to 1,900 school district jobs dropped from the payroll because of $80 million in budget cuts since 2007 due to state funding reductions, declining tax collections and falling enrollment. </p><p>The governor recommended a $412 hike in per-student funding, bringing it to $6,799. With Volusia enrolling 61,124 students, that would amount to a $25 million increase next school year, close to what school officials say is needed to balance the budget. </p><p>Smith warned it's not that simple. For one thing, Volusia is expected to lose about 400 students next school year and would lose the state funding for them, too. Smith said Scott's budget doesn't reflect that. </p><p>And even if lawmakers went along with the $412 per-student increase, Volusia would get only $395 for each student because it's penalized under a state cost-of-living adjustment to the funding formula that has cost the district $97 million since 2004. </p><p>Smith said the biggest issue is Scott's other initiatives included in the $1.2 billion increase he's recommended are already wrapped into the hike in per-student funding, not in addition to it. </p><p>So that means most of the $1.2 billion increase would be earmarked for teacher raises, state-required digital instructional materials and computer-based testing, school security, statewide enrollment growth and increased employer contributions to the state retirement fund. </p><p>In Flagler County, Scott's budget proposal would amount to an additional $5.1 million for public schools, with a little more than $2 million going for teacher raises. Flagler officials cut about $3.5 million from the school district's budget for the 2011-12 fiscal year, which included cutting the middle and high school days by 45 minutes and eliminating 42 teaching positions.</p><p>Preliminary projections show Volusia would have about $5 million extra under the governor's budget that the School Board would have the flexibility to direct where it's needed most, Smith said. </p><p>"I don't scoff at that, but we have a $30 million deficit when you include the increased costs we're facing," she said. "That's why I'm having to make these hard and tough recommendations to the School Board." </p><p>The board will start tackling those issues in a workshop from 9 a.m. to noon Feb. 26 in the School Administrative Complex, 200 N. Clara Ave., DeLand.</p>